FX.co ★ European Stocks Set for a Higher Open

European equity markets were set for a higher open on Wednesday, with sentiment improving even as geopolitical tensions in the Middle East intensified. Iran launched strikes on several Gulf states, including Bahrain, Jordan, and Kuwait, following US “self-defense strikes” carried out in response to the downing of an American helicopter. The escalation raised concerns that ongoing peace negotiations could collapse. At the same time, investors were awaiting a key US inflation reading that could bolster the case for a Federal Reserve interest rate increase later this year. In parallel, the European Central Bank is widely expected to raise rates on Thursday as policymakers react to a sharp rise in energy prices stemming from the conflict in the Middle East. In premarket trade, futures on both the Euro Stoxx 50 and the Stoxx 600 were up about 0.3%.